Military Pension

[shines2243]

Sorry but i am sure youve had this question a million times, but i am a new member and just seeking a bit of info if possible.......so here goes
I am currently in receipt of my full pension, i left 6 years ago having served 22 yrs (Sgt) and i was hoping/wondering that someone can possibly tell me how much of an increase i could possibly be expected to receive once i reach the age of 55 as currently i receive around 10k yearly and was wondering once i reach that age the increase would be as i was told 55 was the age it increases to its max...Many thanks.....Steve

 

[Boris_Johnson]

Depends if you commuted it when you took your IP?

In the old days it was RPI linked to with the cost of living increase plus commutation paid back would near enough double at 55 years of age.

Nowadays it's CPI linked so my guess is your 10k will grow to anywhere between 17 and 19k...?

Unless of course you didn't commute any pension in which case it would be around 14-16k.

 

[ExREME..TECH]

Depends if you commuted it when you took your IP?

In the old days it was RPI linked to with the cost of living increase plus commutation paid back would near enough double at 55 years of age.

Nowadays it's CPI linked so my guess is your 10k will grow to anywhere between 17 and 19k...?

Unless of course you didn't commute any pension in which case it would be around 14-16k.

I don't think he commute anything, and it depends on what age he left

 

[Northern_Biff]

Sorry but i am sure youve had this question a million times, but i am a new member and just seeking a bit of info if possible.......so here goes
I am currently in receipt of my full pension, i left 6 years ago having served 22 yrs (Sgt) and i was hoping/wondering that someone can possibly tell me how much of an increase i could possibly be expected to receive once i reach the age of 55 as currently i receive around 10k yearly and was wondering once i reach that age the increase would be as i was told 55 was the age it increases to its max...Many thanks.....Steve

I left in 2001 as a WO1 at 41 after 23 years colour service and commuted every penny I could.
At 55, my pension almost doubled. Cheers easy.
It really depends on what the interest rates have been doing between you leaving and the 55 year point.

 

[ExREME..TECH]

I left in 2001 as a WO1 at 41 after 23 years colour service and commuted every penny I could.
At 55, my pension almost doubled. Cheers easy.
It really depends on what the interest rates have been doing between you leaving and the 55 year point.

Weren't you on CPI for a few years though?
PS You deserve every penny........

 

[Northern_Biff]

Weren't you on CPI for a few years though?
PS You deserve every penny........

Yes, CPI before it went to RPI. I wasn't really that bothered as it just topped up my salary.
I would hate to have relied on it as a sole source of income.
My advice would be to throw as much as you can into another pension scheme when you leave.

 

[shines2243]

yeah in another pension...thanks guys

 

[Boris_Johnson]

There is another option.

Use a CPI calculator based on the last 14 - 15 years. Put in 10k for 2004, 2005, whatever, see what that's worth now. Then add whatever you've been paying back in commutation and you won't be too far off what you can expect.

Google CPI calculators.

PS it was RPI, now CPI (@Northern_Biff)

 

[Boris_Johnson]

A WO1 pension taken now at 25% commutation would be around 13.5k rising to around £16.5k once paid back.

Applying a BR Code of 20% this works out at £900 per month.

Based on the last 14 years, using the Bank of England CPI calculator, and applying the same BR Code this rises to £1660 per month which would be roughly £140 short of doubling up.

Add to that, the global financial crisis, double-dip recession etc and it will probably be a little closer, if not more than double.

 

[shiny_arrse]

Chris951 produced a very useful spreadsheet at post #9 in https://www.arrse.co.uk/community/attachments/blank_army_pension_projection-xls.25984/ which could help in estimating the value of your pension.
You will have to plug in the RPI and CPI figures yourself (I tried to upload a copy but got a message saying .xls is not an allowed file type).
The figures I have are as follows: 2009 = 5.2%, 2010 = 0.0%, 2011 = 3.1%, 2012 = 5.2%, 2013 = 2.2%, 2014 = 2.7%, 2015 = 1.2%, 2016 = 0.1%, 2017 = 1.0%, 2018 = 3.0%

Hope this helps.

 

[Donny]

Chris951 produced a very useful spreadsheet at post #9 in https://www.arrse.co.uk/community/attachments/blank_army_pension_projection-xls.25984/ which could help in estimating the value of your pension.
You will have to plug in the RPI and CPI figures yourself (I tried to upload a copy but got a message saying .xls is not an allowed file type).
The figures I have are as follows: 2009 = 5.2%, 2010 = 0.0%, 2011 = 3.1%, 2012 = 5.2%, 2013 = 2.2%, 2014 = 2.7%, 2015 = 1.2%, 2016 = 0.1%, 2017 = 1.0%, 2018 = 3.0%

Hope this helps.

That’s good, but there’s a (slightly) easier method by using the multiplier tables produced monthly by the government. So long as you know the full pension figure (ie before any commutation), and the month it started, then you can multiply it by the figure in the tables to get the value today taking account of all CPI increases in the meantime.

If you follow the link below and then click on the multiplier tables document, you’ll see what I mean - they’re pretty straightforward.

Public service pensions increase: 2019

 

[old_bloke]

I have asked the same question for years.

However I left in 2007 with max commutation.

Very happy to say last month as I hit 55 my pension went up from 800 to 1350.

Also I lost out as they buggers take into account the month your birthday is as the RPI is tied to the month . So Iost out 8 months of the increase.

Still laughing all the way to the bank.

 

[combatintman]

You can also request a free pension forecast once every 12 months. The details are in your annual AFPS newsletter.

 

[303rifleman]

I left in 2001 pension as WO2 was £500 odd a month to age 55 now £910 a month and increases yearly by the % allocated.